What Happened?

Shares of earth imaging satellite company Planet Labs (NYSE: PL) jumped 26.1% in the afternoon session after the company reported strong fourth-quarter financial results and provided upbeat revenue guidance. 

For the fourth calendar quarter of 2025, revenue grew 41.1% from the previous year to $86.8 million, easily beating analyst expectations. The company also reported adjusted earnings per share of $0, a significant improvement from a loss in the same period last year and better than Wall Street had anticipated. This strong performance was supported by a rapidly growing backlog of future orders, which increased over 80% to $900.4 million, signaling robust demand for its Earth-imaging data and services. Looking ahead, Planet Labs guided for first-quarter revenue that was also above analysts' forecasts, reinforcing investor optimism about its growth trajectory.

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What Is The Market Telling Us

Planet Labs’s shares are extremely volatile and have had 64 moves greater than 5% over the last year. But moves this big are rare even for Planet Labs and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 3 days ago when the stock gained 7.5% on the news that investor excitement grew around its artificial intelligence (AI) and defense applications, fueled by a new collaboration with NVIDIA and anticipation ahead of its earnings report. 

The day before the stock's jump, Planet Labs announced it was working with NVIDIA to build an AI engine for planetary intelligence. This partnership aimed to use NVIDIA's advanced platforms to dramatically speed up the processing of satellite imagery, turning raw data into useful insights in seconds rather than hours. The stock's rise also occurred during NVIDIA's GTC conference, which focused investor attention on AI-related companies. Furthermore, the value of Planet's technology for defense and intelligence was highlighted as its satellite images were used to show damage from the war in Iran. Investors were also positioning themselves ahead of the company's scheduled earnings call.

Planet Labs is up 65.4% since the beginning of the year, and at $33.77 per share, has set a new 52-week high. Investors who bought $1,000 worth of Planet Labs’s shares at the IPO in April 2021 would now be looking at an investment worth $3,410.

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